Bitcoin analysis for 07/02/2018

The Deputy Prime Minister of Singapore, Tharman Shanmugaratnam, made a new comment regarding the government's commitment not to ban cryptocurrencies - as part of its future regulatory plans. In a series of fourteen statements published on Monday, February 5 in response to questions from parliamentarians - Tharman Shanmugaratnam, deputy prime minister, and minister responsible for the regulatory body, namely the Singapore Monetary Office (MAS), confirmed the passive cryptocurrency policy in the future."MAS is carefully monitoring these events and the potential risks they pose. So far, there is no strong argument to prohibit trading in cryptocurrencies "- Deputy Prime Minister said.

Like Japan, in the last few years Singapore has emphasized that it is a permissive environment for both cryptocurrencies and Blockchain innovations. In contrast to China and Indonesia, the city-state favored Blockchain in particular as part of its desire to become a global technology center. Referring to the discrepancy between Singapore and its neighbors, Shanmugaratnam pointed out that the volumes involved were relatively small and that the exposure to the financial system was insignificant. "For now, the nature and scale of cryptocurrency trading in Singapore do not pose a threat to the security and integrity of our financial system (...) In addition, the links between cryptocurrency transactions and the Singapore financial system are not significant at the moment. The Singapore banking system has no significant exposure to global and local cryptocurrency entities. Therefore, we do not have wider, systemic risk concerns with regard to cryptocurrencies "- Shanmugaratnam continued. Last month, Managing Director of MAS, Ravi Menon, spoke in a similar way to the future of cryptocurrencies when he went to the mainstream media to say that he hopes that assets and underlying technology will endure a serious breakdown.

Let's now take a look at the Bitcoin technical picture at the daily time frame. The price hs bounced from the longer trend line dynamic support at the level of $5,846 and is trying to move higher. The low at the level of $5,846 might be the bottom of the wave (C), but it needs a further confirmation. The next important technical resistance is seen at the level of $9,132.

analytics5a7ab9a8ae780.jpg

The material has been provided by InstaForex Company - www.instaforex.com